Budgeting Assignment IBL company manufactures furniture. Budgeted sales for 4 months are given below and the table also include selling price Months Quarter 2 April May June August Budgeted sales [units] 1500 2800 3200 3500 $150 Selling price Each piece of furniture requires 10 square feet of wood which cost $4.00 per square feet. The targeted beginning inventory equals to 15% of next month's sale Inventory at April 1st consisted of 120 pieces of fumiture. The company decides of keep an inventory of wood equal to 25% of next month requirements Materials inventory on April 1st consisted of 3800 sq feet of wood. The company estimates an inventory of wood on hand at the end of June of approximately 2500 sq feet of wood. It takes about 4 hours of direct labour to make one furniture. The workers are paid $11.50 per hour Below is listed the variable and fixed manufacturing overhead Variable manufacturing overhead Unit variable overhead cost $1.50 Fixed manufacturing overhead Security Guard wages $3200 Depreciation of factory building $1500 Depreciation of factory equipment $850 Factory rent expense $1450 Utilities expense (factory) $350 The following additional information is provided for making the pro-forma income statement Beginning finished goods Ending finished goods Selling expenses Admin expenses Interest Rate Tax Rate Interest bearing debt REQUIRED $7800 $4000 $6200 $5100 4% 15% $15,000 1. Prepare a sales budget in $ for each month and in total of Quarter 2 2. Prepare a production budget in units for each month and in total of Quarter 2. 3. Prepare a purchases budget in $ for direct materials for each month in total Quarter 2 4. Prepare a direct Labour budget for each month and in total for the Quarter 2 5. Prepare a manufacturing overhead budget for each month and in total for Quarter 2 6. Prepare the total cost of goods sold for the quarter 7. Make a pro-forma income statement for the quarter 8. Calculate the unit cost of the fumiture and calculate the margin charged on the item